Jul 2, 2024 at 01:00After a turbulent June, the crypto market might be poised for a “relief rally,” with signs indicating that selling pressure on exchanges is diminishing.
According to Santiment, a crypto intelligence platform, there is optimism for July following significant trader capitulation in June. In a post on July 2, Santiment noted that negative market sentiment and trader losses suggest that a relief rally could be on the horizon.
June’s Performance and Market Outlook
Bitcoin (BTC) experienced a nearly 7% decline in June, hitting a low of $59,500, according to Cointelegraph Markets Pro. The overall crypto market capitalization dropped by approximately $400 billion from its $2.5 trillion peak, as reported by TradingView.
Analyst Minkyu Woo, a verified author on CryptoQuant, shared similar optimism, stating that sellers appear to be exhausted. Woo observed a decrease in large Tether (USDT) outflows from exchanges since January last year, with a notable reduction in June. This suggests that large-scale selling pressure on exchanges is waning.
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Investor Sentiment and Future Projections
Woo mentioned that this decrease in outflows indicates investors are more inclined to hold their assets rather than cashing out, implying a more positive investor sentiment following the Bitcoin halving event. Currently, BTC is trading around $62,950, down 0.4% over the past 24 hours.
Potential Challenges Ahead
Despite the positive outlook, there are some potential headwinds for Bitcoin and the broader crypto market. The long-bankrupt exchange Mt. Gox is set to unlock $9 billion worth of BTC, which could lead to selling pressure as creditors may look to cash out their crypto holdings that have been locked up for a decade.
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